Site owners who are interested in recruiting clients through Affiliates, must offer a compensation plan that will provide an incentive in order to redirect users to their site.
One important rule, each of the methods listed below, require a system that
will enable real-time tracking and conversion.
In other words, a telephone transaction that cannot be tracked will not be
suitable for an affiliate program as a reward based on success only, even if
you are confident in your ability to track each incoming call.
(actually, when the customer is interested in the service, the only thing that
will interest you is to concentrate on selling your product and not ask him
where he came from).
Here are some known and accepted affiliate marketing methods:
CPC - cost per click. When you apply for promotion sponsored by Google or
other affiliate networks specializing in such campaigns, you will pay for each
click which brings surfers into the website. The price will usually be
determined according to supply and demand, the more the industry will
penetrate, the higher the price per click.
CPL-cost per lead. A customer was directed to a landing page, left details for
the advertiser to contact. This method is usually found in study sites, real-
estate and more.
CPA -Cost per transaction. The customer (surfer) is required to perform an
operation such as registering to the system, opening an account, depositing
money, installing software, downloading a demo version, etc. Our goal as
advertisers is to contact those customers who have taken the steps and turn
them into active customers. If the client is required to deposit money we must
also measure the transaction number (transaction) in which the transfer of
funds from the client to our site.
CPS-percent of the selling price. The customer is directed to the advertiser's
site and makes a purchase. The affiliate will be compensated in percentages
that were agreed in advance for each sale. In this method we have to
measure the transaction amount in each transaction to know how much to
reward our affiliates. This method can only exist when the transaction is
executed and closed via the Internet only, which includes confirmation of the
order and without the need for telephone coordination.
HYB - a combination of cost per operation and percentages of the selling
price. If you run an advanced affiliate program, you can reward your partner
with a basic reward for each referral customer. The incentive for an affiliate to
better perform is based on providing additional percentages of the value of the